THESTATEOF CHANNELMARKETING ighttoyouby: 360insights IDG TESEARCH Executive ttoyouby: 360insights IDG TheChannelMarketingIndustryisRipeforChange. Three-guartersofchannelmarketersagreethattheircurrentsolutionshaveapositiveimpactonsalesandviewhavingtherightoneasasignificantcompetitiveadvantage.Butonlyabouthalf(51%)believethatchannel marketingeffortsyieldequivalentbenefitsasothermarketingprograms. Theyarealsokeenlyawareoftherisksofdoingitpoorlywith90%believingit candamageabrand'sreputation.Despitethis,budgets(s57MMonaverage)arenotunderthreatwith40%expectingtoincreasespendby5-7%inthenext12months. Thetopchallengesaretypicallytoolandsystem-related:Visibilityislimitedbyanalytics;processesrequirealotofheavylifting;andROlcan'tbeoptimized withcurrentapproaches. 360insights IDG WheretheChannelMarketingIndustryisShifting. TheindustryhasmaturedtothepointthatoptimizingROlanddatadrivendecision-makingarejustasimportantasdemandgeneration.Currently,onlyone-thirdsaytheirspendacrossprogramsisoptimizedandfew(38%)getanythingmorethanbasicoutputsfromwhatlittleanalyticstheyemploy Organizationsaretakingactionasaresult:57%havemade"fundamentalchanges"inthepast12months.End-to-endsolutionsseemsettobenefitsignificantlyfromthisshift(71%wouldpreferanend-to-endsolutiontomultiple)inlargepartbecauseoftheimportanceofoptimizingallocations(84%sayit'sCriticalorveryimportant)inrealtimeusingdataanalytics(77% wouldchooseavendorwhocouldmodelspendallocationsinreal-time), 360insights IDG 14% 100 80 6015% 40 20 10 18%36% SURVEYRESULTS BriefSummaryofResults 90% Channelmarketersunderstandthebenefitsofhavingtherightsolution,buttheyarealsokeenlyawareofhavingapoorone 76%Believethattherightstrategyisacompetitiveadvantage TheindustryhasmaturedtothepointthatoptimizingROlanddatadrivendecisionmakingarejustasimportantasdemandgen. However,half(49%)saythatchannelmarketingdoesnotdeliverthesameimpactasBelievethatapoorChannel othermarketingefforts,butdespitethis,budgetsarenotunderthreatwith40%MarketingStrategycan expectingtoincreasespendby5-7%inthenext12months.damageabrand'sreputation Thetopchallengesaretypicallytoolandsystem-related:Visibilityislimitedbyanalytics;processesrequirealotofheavylifting;andROlcan'tbeoptimizedwithcurrent approaches. IDG Conductofchannelmarketingisalreadychangingasaresult(57%havemade"fundamentalchanges"inthepast12months),andend-to-endsolutionsseemsettobenefitsignificantlyfromit(71%wouldpreferanend-to-endsolution)inlargepartbecauseoftheabilitytooptimizeallocationsinrealtimeusingdataanalytics. ughttoyouby: 360insights WeProvidedRespondentswithaSingle,UnifiedDefinitionforChannelMarketing: Weincludebothpartnermarketingandconsumerincentiveslikeco- opprograms,marketdevelopmentfunds,salesincentives,SPIFFssel/-throughallowances,rebates,volumeincentives,andother promotionsundertheumbrellatermchannelmarketing. IDG ghttoyouby 360insights Theof Channel ttoyouby: 360lnsights IDG Channelmarketersunderstandthebenefitsofhavingtherightsolution,buttheyarealsokeenlyawareofhavingapoorone AgreementwithStatements Apoorchannelstrategycandamageabrand'simage62%28%%06 47% 35% 82% %99 22% 76% 35% 39% 75% Thevisibilitygainedfromend-to-end,customerdataanalyticscould savealotofwastedchannelmarketingdollars Therightchannelstrategyisasignificantcompetitiveadvantage Technologyisanessentialcomponentofacompetitivechannelstrategy Providingacompleteincentivecustomerexperiencehelpsgenerate positivebrandawareness Betterintegrationbetweendealer,SAandconsumerincentives promotionswoulddrivemoresales Thereisvirtuallynocoordinationbetweendealer,SA,andconsumer incentivespromotions Stronglyagree % Somewhatagree 41%75%Top2BoxAgree 29%43%73% 29%18%47% Broughttoyouby: q14:Pleoserateyourfeve/ofagreementwiththefollowingstatements.Base=51IDG 360insights ChannelmarketinghasmaturedtothepointthatoptimizingROland GoalsforChannelMarketingStrategyintheNext12months Increasingdemandgeneratedbychannelpartners%8L OptimizingchannelmarketingspendforimprovedROI76% Enablingdatadrivendecisionmakingthroughimprovedanalytics73% Buildingbrandadvocatesthroughaflawlessexperience51% Improvingtheclaimverification/auditingprocess43% Digitallytransformingtheprocessinthecloud41% 360insights Noneoftheabove2% q1:Thinkingaboutyourchannelmarketingstrategy,which,ifany,ofthefollowingoregoalsforyourbrandoverthenext12months?Base=51 IDG Decision-makersrecognizethatwhilechannelmarketingishavinga positiveimpact,it'snotlivinguptootherinvestments TrueorFalseStatements Ourchannelmarketingprogramshaveademonstrated,positive impactonannualsales Ourchannelmarketingprogramsdeliverthesamevalueasothermarketinginvestmentswearemakinginthebusiness 75%25% 51%49% Broughttoyouby: q8:Trueorfalsetime.PleasetellusifthefollowingstatementsoregenerallytrueorfalseforchonnelmarketingprogramsatyourIDG 360insightscompany.Tellusthefirstthingthatpopsintoyourheod.Base=51 Eventhoughchannelmarketinglagsotherinvestments,decision-makersarestillwillingtothrowmoremoneybehindit If1hadanextra$10,000inmymarketingbudget,Iwouldspenditonchannelmarketi